ND House rejects oil tax restructuring measure
http://www.inforum.com/event/article/id/398328/publisher_ID/1/
BISMARCK – House legislators Wednesday rejected an oil tax reform bill that would have lowered the oil extraction tax, closed a tax loophole for low-producing wells and set up guidelines for a new tribal tax agreement.
Rep. David Drovdal, R-Arnegard, said the conference committee met 17 times to reach a compromise on House Bill 1234, which aimed to reform several oil tax provisions while staying close to revenue neutral for the state. The bill failed 71-21.
The bill would have increased taxes on the oil and gas industry by $65 million but would have resulted in a $9.9 million loss in revenue to the state of North Dakota because more tax dollars would go to the Three Affiliated Tribes, Drovdal said.
Rep. Scot Kelsh, D-Fargo, said the bill had some good provisions, but reducing the oil extraction tax from 6.5 to 6 percent was a deal-breaker.
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